Paying EMIs (equated monthly instalments) on time is one of the important aspects of managing your loan repayment. It’s extremely critical as it not only reduces your debt and the accrued interest but also helps you to maintain your credit score.
It’s important to pay your EMIs on time as it helps you to avoid penal charges, which may be applicable on overdue payments. Missing out on your EMI due date will have a negative impact on your CIBIL Score as well. A low credit score, in turn, may affect your eligibility, which may make it difficult for you to get a new loan on favourable terms. Therefore, it’s essential to understand how you can avoid any overdue EMIs.
Here’s a list of tips that can help you to manage your loan repayment efficiently and avoid overdue EMIs:
Plan your finances better
It’s important to plan your finances before you take out a loan. This means you should analyse your income, existing expenses, and liabilities before taking a loan. You should also borrow a loan amount that you can easily repay based on your income. This will ensure that you have enough funds to pay your EMIs without any default.
Opt for a longer tenure
When you borrow a loan, you can opt for a longer repayment tenure. This will help you spread your loan amount over a long period of time and make your EMIs affordable. This will make your loan repayment easy and help you avoid any defaults.
Maintain sufficient account balance
While you are repaying a loan, ensure that you have surplus funds in your registered bank account two days before your EMI due date. This will help you to avoid any default on the EMI payment.
Keep your bank account details updated
When you borrow a loan, you register a bank account from which your EMIs get auto-deducted every month. This process is called mandate registration. By using this automated EMI payment system, you can ensure that you don’t miss out on any instalments. During your loan repayment tenure, if there’s any change of your registered bank account, you must update your mandate. This will ensure that you don’t miss out on any EMI payments.
Use other repayment options
In case you have a fear of missing your EMI due date, you can pay an EMI in advance and avoid overdue instalments. You can also keep part-prepaying your loan whenever you have surplus funds. This might help you in reducing your EMI amount making your instalments affordable.
If you’ve taken a loan from us, you can easily track your loan account by using our customer portal on the web and app. You can click on the ‘Pay Now’ button to clear your overdue EMI in a few simple steps.
